EPP awards Toktogul HPP modernization contract to GE joint venture

Published 12 February 2018

Electric Power Plants (EPP) has awarded a $104m contract to a joint venture of GE Hydro (France) and GE Renewables (Switzerland) for the Asian Development Bank-supported (ADB) modernization of the Toktogul hydropower plant (HPP) in Kyrgyz Republic.

The modernization project includes new state-of-the-art units which will improve safety, efficiency, reliability, and availability of the Toktogul HPP, located on the Naryn River in the Jalal-Abad Province and considered the country’s largest and most important hydropower plant, increasing its overall capacity to 1,440 megawatts. The additional capacity will be sufficient to supply about 200,000 households for an entire year.

ADB and the Eurasian Development Bank (EDB) financed the replacement of four units of the Toktogul HPP, which has been generating about 6,000 gigawatt hours per year for 43 years. Because of aging equipment, however, the plant has experienced increasing number of failures in recent years.

ADB Kyrgyz Republic Country Director Candice McDeigan said: “ADB has been supporting the energy sector in the Kyrgyz Republic since 1996 as the rehabilitation, replacement, and augmentation of power sector assets are critical for energy security in the country.

ADB Central and West Asia Department Energy Division director Ashok Bhargava said: “The phased rehabilitation of the Toktogul plant has been the key priority for ADB’s energy sector support in the Kyrgyz Republic and its timely rehabilitation is key to the country’s plan to export summer surplus to Afghanistan and Pakistan through the CASA-1000 power transmission line.”

EPP commenced phased rehabilitation of the Toktogul HPP project in 2012, starting with the refurbishment of the secondary electrical and mechanical equipment, the rehabilitation of two Toktogul units, and later completed by the remaining two Toktogul units, with an overall target completion by 2024-2026. The latest milestone was a result of the extensive competition among all major players and EPP’s innovative approach to procurement and design, which brought in competitive pricing and accelerated completion of the project by 3 years.

EPP general director Uzak Kydyrbaev said: “In 2016, EPP decided to fast track the procurement of the four turbines and generators of the Toktogul HPP through single procurement for economies of scale, resulting to completion three years early. With ADB support, the EPP conducted multiple roadshows to improve the procurement design based on industry feedback and international best practice to increase completion for the project.”

GE Capital, the ultimate parent of the GE consortium, has provided a guarantee to support its operation in the Kyrgyz Republic. GE has committed to commission the first unit by November 2020, and one additional unit each year by November 2023.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region.